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ThyssenKrupp denies report it may scrap Steel Americas sale

FRANKFURT (Reuters) - Germany's ThyssenKrupp has denied a media report that it planned to scrap the sale of its Steel Americas business, the loss-making unit it has tried for more than a year to offload.

"The sales process is continuing," a spokesman for the steel maker said late on Monday.

German paper Frankfurter Allgemeine Zeitung in an excerpt of an article to be published on Tuesday cited sources close to the company as saying ThyssenKrupp was set to stop the sales process for Steel Americas, comprising a steel mill in Brazil and a plant in Alabama, to launch a quick capital increase.

Continuing losses at Steel Americas have put the company, a symbol of Germany's industrial prowess, at risk of breaching loan covenants and increased pressure on management to raise fresh funds.

Chief Executive Heinrich Hiesinger recently said he may not wait until a deal has been struck to raise capital.

(Reporting by Maria Sheahan and Jonathan Gould; editing by David Evans)


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Source: Reuters


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